LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek Radio: Professor Laurence Kotlikoff, Professor Alexander Kosovichev & Robert Ian
By: Chris Waltzek Ph.D., GoldSeek Radio

You Know Things are Falling When…
By: David Haggith

Gold & Silver Prove Once Again, They Go Up When Most Everything Goes Down
By: SRSrocco

Why Debt Won't Spark Inflation
By: John Mauldin, Thoughts from the Frontline

COT Gold, Silver and US Dollar Index Report - May, 24, 2019
By: GoldSeek.com

BIS reduces its gold swaps by two-thirds over last two months
By: Robert Lambourne

Gold Mid-Tiers’ Q1’19 Fundamentals
By: Adam Hamilton, Zeal Research

China Threatens to Stop Exports of Vital “Rare Earth” Metals to U.S
By: Mike Gleason

Every Bounce In Tesla Stock Can Be Shorted
By: Dave Kranzler

Another Gold Buyout Takes Center Stage
By: Marin Katusa

 
Search

GoldSeek Web

 
Crude Oil Weakness is Not Gold Friendly

By: Dan Norcini

 -- Published: Tuesday, 30 June 2015 | Print  | Disqus 

Amidst all the talk about “Grexit” ( are the rest of the readers as sick of hearing about this as I am at this point?), one thing being overlooked, especially by those who keep calling for some sort of rip roaring surge higher in gold and silver, is the fact that crude oil is weakening.

In short, with many looking at the situation in Greece as contributing to a hit on economic growth, and with the fact that China is struggling, crude oil is moving lower as traders are concerned over a SLOWDOWN IN DEMAND.

Chart20150629173455

While the market has not broken down as it continues trading within a tight congestion zone, it has fallen down below the 50 day moving average. That is the first time it has done so since its recovery above that key technical indicator since in late March/early April.

Both of the technical indicators I am using on this market are neutral to bearish at this time.

The RSI has been meandering in a sideways pattern below the 60 level since late May. It did manage to hit the 70 level in early May but has since floundered.

I like to key in on this market, much more so than gold, when it comes to getting  a sense of what the deflation/inflation battle is shaping up to be. I am also on record as stating that unless inflation is in the forefront of traders’ minds, silver is going nowhere.

Without support from a rising crude oil market, which would signify the return of an inflationary bias to the commodity sector, those assets that require an inflationary environment in which to thrive, are going to struggle to sustain rallies.

That is being borne out by the silver chart, which in spite of the near-daily breathless comments about record open interest heralding the advent of some sort of stratospheric rally according to the gold ( and silver ) bugs, continues to go in the path of least resistance, namely down.

Chart20150629173854

It is barely clinging to support near $15.50 after falling below the rising channel. A close below that level targets the March low near $15.25.

Silver needs an inflationary bias to have any hope of embarking on some sort of bull move. It is that simple. Without such, all of the hot air being expended by the gold bugs about silver this and silver that, all on account of record open interest, would be much better spent powering turbines to produce electricity instead of masquerading as intelligent market analysis. That way, something constructive might actually be produced instead.

I will leave you with the same chart we have been using here since October of last year to get a sense of the direction for gold.

It continues to mirror the Ten Year Treasury Note futures contract.

Chart20150629174502

http://traderdan.com/


| Digg This Article
 -- Published: Tuesday, 30 June 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.